Bankruptcy myths abound, and they can often give people the wrong idea about the process. It is time to break down at least one of those myths to show exactly why it does not hold up.
Worried that your credit score will drop after you file for bankruptcy? That is one of people's most common concerns, but do not worry that it has to last forever. There are plenty of things you can do to rebuild your credit. That's why people refer to bankruptcy as a fresh start.
You received the letter from the Internal Revenue Service that no one in the state of New York, or anywhere else for that matter, wants to get. You are being audited and now you have concerns about how to handle the situation and what you are going to do if you end up having to pay even more in taxes, fees and penalties since you are not in a financial place to do so.
Chapter 13 bankruptcy gives you an affordable repayment plan that you can use for the next few years -- typically between three and five years -- to pay back what you owe. Some of your debt may be forgiven, but the goal is repayment instead of elimination.
You want to file bankruptcy alone, without your spouse, hoping to shield him or her from the impact as much as possible.
One of the prevailing myths about bankruptcy is that since you are going to eliminate your debt anyway, you might as well spend frivolously for a month or two before you file.